Government says it's flat broke and absolutely HAS TO save 60 million dollars on wages and 20 million on increments in the next fiscal year, but the unions aren't caving to that ultimatum.
Last week, they were tasked with developing a counterproposal to GOB's initial proposal of 10% salary cuts and increment freezes for three years. Well tonight, reliable reports tell us that they have rejected salary cuts on a whole in that counterproposal.
An internal memo from the BNTU dated March 10 advised its members that two unions have agreed to accept a one year increment freeze as a compromise. There is no suggestion of salary cuts in the memo.
The BNTU then asked their members to fill out a survey by March 15, which is today. That survey poses the question, "Would you accept one year increment freeze as a compromise to GoB's proposal instead of 10% salary cut and increment freeze for three years?"
The PSU reportedly also met with its members today. The unions are expected to present their counterproposal to the government, who will then make the next move.
We are a little over ten days away from March 26, when the budget is expected to be presented - including these cuts. On Wednesday night, the Minister of state in the Ministry of Finance will be on uncut to explain the government's position.
Island teachers protest the Government of Belize's proposed 10% salary cut and three year increment freeze. Following the GOB's proposal, members of the Belize National Teachers Union (BNTU) voted, with the majority refusing the salary cut.
San Pedro’s motorcade was part of a BNTU national movement, and teachers feel that their hard work in educating Belizeans is sometimes not recognized by the relevant authorities. They claim that the campaign’s success will benefit them and all public officers in Belize, who could see a 10% cut in their salaries when GOB presents the upcoming budget for the fiscal year 2021-2022 on March 26th.
Re: Government Proposes Wage Cut
[Re: Marty]
#548864 03/16/2111:30 AM03/16/2111:30 AM
Joint Unions Counter-propose To GOB For 60M In Savings
Prime Minister John Briceno said he wouldn't cut teachers' salaries if they could find some other way to realise budgetary savings of 80 million dollars.
Well, the joint unions, BNTU, PSU, APSSM yesterday wrote a collective letter to the Financial secretary putting forward an 8 page list of proposals.
It opens by saying, quote, "the working-class Public Officers are not in a position to accept the proposed wage bill adjustments, given its potential hardships on an already struggling workforce that is now being asked to further sacrifice for the mismanagement of the country's finances." End quote.
It adds that if government had followed "Cost Savings and Revenue Enhancement Reports," which the union generated over past years, it would have quote, "yielded in excess of $60M per year. It is important that we bring to your attention the severe potential negative socio-economic impact that the removal of $60M from the economy would cause." End quoye.
It also warns that, through this, GOB stands to lose upwards of $15 million dollars per year in P.A.Y.E and G.S.T. combined.
The letter continues to say, quote, "The Joint Unions may be amenable to sacrifice an additional year of increment freeze" end quote, but only on the condition that the Government engages in continuous dialogue with the Unions to monitor the implementation and results of our cost savings and revenue enhancement proposals.
And while they may agree to an increment, don't touch their pensions. The letter says, quote "Notwithstanding such salary adjustments, it is proposed that on retirement of affected public officers, pension would be paid on the basis of a pensionable salary calculated as if salary adjustments had not occurred."
An annex to the letter contains suggestions for "savings and revenue enhancement proposals" which, of course, includes the proposal to cut Ministers' entertainment and telephone allowances.
It also proposes 5 million dollars in savings by making all Ministers', CEO's and other senior government officials buy their government assigned vehicles at market value.
The joint unions expect to elaborate on these and their many other suggestions at a press conference tomorrow morning.
B.N.T.U. National President, Senator Elena Smith says that in other districts, members of the Public Service Union and the Association of Public Service Senior Managers joined in the motorcades. Senator Smith says there is collaboration between the unions in the dialogue with G.O.B. since the salary cut and increment freeze is across the board for all public officers, including police officers.
Senator Elena Smith, National President, B.N.T.U.
“That is the reason why we are moving forward as joint unions to put forward proposals and then to engage in all the other activities. So tomorrow’s press conference will see the other two unions being a part of that. And we should have seen a few of the public officers engaged in some of the districts because time was short with their notifications. So we do expect that as we move along and we progress with our activities that we will have their involvement in those activities.”
Understanding the Increment Freeze: A Teacher’s Perspective
Many teachers are not happy about G.O.B.’s proposed ten percent salary cut and increment freeze. They have taken to the streets to protest these proposals because they feel that they will be giving up a lot and that other measures should be explored. But just how will these proposed measures affect teachers? One teacher has come up with the tables and created an easy to understand video. News Five’s Andrea Polanco reports.
Andrea Polanco, Reporting
Miguel Bonilla is a teacher at the Mount Carmel High School. He made a video to explain what an unfrozen salary increment looks like versus how the salary increment freeze will affect teachers – not just for the next four years but for the duration of their teaching years. In this example, Bonilla starts by showing how a teacher’s continuous increment looks over the duration of his teaching years versus what a four-year freeze would like. This example is of a twenty-eight-year old teacher who has twenty-seven more years until he retires – so someone who is very early in his teaching career. This teacher is on pay scale sixteen point one. He earns a yearly salary of thirty thousand one hundred and seventy one dollars. His yearly increment stands at one thousand three hundred and ten dollars.
Miguel Bonilla, Teacher, Mount Carmel High School
“When he started working at Mount Carmel – let us assume that he started working there last year. His starting salary was thirty thousand one hundred and seventy one dollars. As the year went by he should have in a normal year increase his salary to thirty one thousand four hundred and eighty one dollars and then the subsequent year, according to the table, it would have increased and again and again – over the course of his lifetime he would have earned one million two hundred and ninety two thousand eight hundred and eight dollars. A lot – right? Almost two hundred thousand would have gone in income tax.”
Now, Bonilla explains what a teacher’s salary would look like if government’s proposed four year increment freeze is implemented.
Miguel Bonilla
“In the first year, the salary didn’t increase. In the second year it didn’t increase; in the third year it didn’t increase; in the fourth year it didn’t increase and now in the fourth year which the government is proposing it didn’t increase. Now let us look at the second scenario which is the actual scenario being proposed. His earnings would have been one million two hundred and eighteen thousand one hundred and thirty-eight dollars. If you notice there is a profound difference between what he should have gotten in a normal year to what he is getting in a pandemic year.”
According to Bonilla, this example shows how a four-year increment freeze would short this teacher over seventy thousand dollars over the duration of his teaching career.
Miguel Bonilla
“According to the government, over the four years he should have lost approximately five thousand two hundred and forty dollars however if you minus over a lifetime what he lost you will end up with a total of losing seventy-four thousand six hundred and seventy dollars. So, that is the profound economic impact of a salary freeze over four years.”
Government Needs To Save Now, Unions Say Not Our Problem
espite the work they've put in and despite how long they've been making cost cutting recommendations to the government, the reality is that GOB needs to save 80 million dollars NOW.
And while cracking down on collecting taxes to generate more revenue and limiting the amount spent on vehicles would help, it's not a short term solution, which is what the government has to have.
But even this won't persuade the unions to take the salary cuts lying down. According to the president of the APSSM, the government's need for a quick and easy solution should not be their problem because they have been doing their part even before elections to try and prevent this very same situation.
And while Sharon Frazer conceded that, now, it is everyone's problem, she said that the government needs to get its priorities straight before cutting salaries.
As we've reported, the budget is expected to be announced in less than 10 days. In yesterday's Cabinet meeting, the ministers received the joint unions counterproposal and the PM quote, "approved the progression of discussion with the unions in good faith."
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